By Reuters

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Posted inConstruction, Construction, GCC

Oman’s Raysut says paid $172m to close Pioneer buy

Acquisition of UAE company adds 1.7 million tonnes to Omani cement producer’s existing capacity

By Reuters
CEMENT DEAL: Raysut said the Ras Al Khaimah Investment Authority (RAKIA) would hold one share after the deal (Getty Images)
CEMENT DEAL: Raysut said the Ras Al Khaimah Investment Authority (RAKIA) would hold one share after the deal (Getty Images)

Raysut Cement, Oman’s largest cement producer by market value, on Monday said it paid $172m to close its deal to buy United Arab Emirates’ Pioneer Cement Industries.

The acquisition of Pioneer Cement, based in Ras Al Khaimah, a northern emirate in the UAE federation, adds 1.7 million tonnes to Raysut’s existing capacity, the company said in a statement to Muscat bourse. Raysut announced the deal last October.

The Omani firm said the Ras Al Khaimah Investment Authority (RAKIA), sovereign wealth fund of the emirate, would hold one share after the deal.

Pioneer Cement was set up in 2004 as a joint venture between RAKIA, and Penna Global Investments FZ-LLC from UAE.

Raysut financed the entire deal value by long-term borrowing through a consortium of banks led by Bank Dhofar, it said in the statement.

In October, Raysut said it will buy Pioneer Cements but did not give a value for the deal.

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